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TAKE-OUT COMMITMENT A promise to make a loan at a future specified time. It is most commonly used to designate a higher-cost, shorter-term, back-up commitment as a support for construction financing until a suitable, permanent loan can be secured.

TAX LIEN A lien on a property by local, state or federal government for the amount of due and unpaid taxes.

TIL See Truth-in-Lending Act.

TITLE The evidence of the right to or ownership in property. In the case of real estate, the documentary evidence of ownership is the title deed, which specifies in whom the legal state is vested and the history of ownership and transfers. Title may be acquired through purchase, inheritance, devise, gift or through the foreclosure of a mortgage.

TITLE INSURANCE BINDER 1) A report issued by a title insurance company stating the condition of title to certain property as of a certain date and also stating conditions which, if satisfied, will cause a policy of title insurance to be issued. Also called "commitment." 2) A policy of title insurance (used primary by investors) calling for a reduced rate for a future policy if the property is sold within a specified period.

TITLE INSURANCE POLICY A contract by which the insurer, usually a title insurance company, indicates who has legal title and agrees to pay the insured a specific amount of any loss caused by clouds, claims or defects of title to real estate, where the insured has an interest as owner, mortgagee or otherwise. (a) Owner's Title Policy: Usually issued to the landowner himself. The owner's title insurance policy is bought and paid for only once and then continues in force without any further payment. Owner's Title Insurance policies are not assignable. (b) Mortgagee's Title Policy: Issued to the mortgagee and terminates when the mortgage debt is paid. In the event of foreclosure, or if the mortgagee acquires title from the mortgagor in lieu of foreclosure, the policy continues in force, giving continued protection against defects of title which existed at, or prior to, the date of the policy.

TRUTH-IN-LENDING ACT Federal legislation that provides borrowers with specific information on the cost of obtaining credit.

UNDERWRITING In mortgage lending, the process of approving or denying a loan based on an evaluation of the property and the applicant's creditworthiness and ability to repay the loan. The underwriter analyzes the risks involved and selects an appropriate loan term and interest rate.

UNIFORM SETTLEMENT STATEMENT Provides an itemization of both the seller's and borrower's costs for closing the loan.

VARIABLE-RATE MORTGAGE A long-term mortgage loan in which the interest rate may vary or float periodically throughout the term of the loan. The fluctuations are generally based on an interest rate index and are restricted under the terms of the mortgage. Also called "adjustable-rate mortgage."

VERIFICATION OF DEPOSIT A form sent to each depository listed on the loan application to verify the funds of the borrower at such institution.

VERIFICATION OF EMPLOYMENT A form sent to the borrower's employer to verify the borrower's employment and employment history.

VETERANS ADMINISTRATION An independent agency of the federal government which helps veterans get long-term, low down payment mortgages. The agency normally does this by guaranteeing a portion of a lender's loans against loss. In return for this guarantee, lenders must follow prescribed procedures for loans established by the Veterans Administration (VA).

VOD See Verification of Deposit.

VOE See Verification of Employment.

WARRANTY DEED A deed used in many states to convey good fee simple title to real property.